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    HUSKY AIRPILOT ANGELS

    Business Case and Project Infrastructure

    Submitted by: Team A2K

    UMUC ITEC 640

    Friday, February 17, 2012

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    Table of Contents

    Business Case

    1.0

    Introduction and Project Name4

    2.0 Project Team4

    3.0 Project Description...4

    4.0 Measurable Organizational Values

    Desired Area of Impact..6

    Desired Value of the Project...7

    Metric & Timeframe for Achieving MOV ... 8

    Summarized MOV.....95.0 Alternative Analysis

    Total Cost of Ownership.11

    Total Benefits of Ownership..12

    Alternative A (Status Quo) 13

    Alternative B (COTS)14

    Alternative C (Custom)..14

    NPV Calculations...15

    6.0

    Recommendation ..................................................................16

    Project Infrastructure

    1.0 Introduction and Project Name .............................................19

    2.0 Project Team .........................................................................19

    3.0 Measurable Organizational Values .......................................19

    4.0 Resource and Cost Estimates ................................................21

    Reference Listing ..........................................................................24

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    Husky Air Reservation

    System Business Case

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    1.0

    Introduction and Poject Name

    Team A2K has been hired to work on the Husky Air Reservation System project in order to

    build a software system to track Husky Air Pilot Angel volunteers, store pilots basic information,

    total hours, certifications, and ratings. The Business Case is intended to provide senior

    management with the information needed to make a decision about the viability of the proposedproject effort. This document will demonstrate the methods and rationale used in determining the

    benefits and quantifying the estimates (Marchewka, 2009, p. 42). Several alternatives will be

    assessed and a final recommendation will be provided.

    2.0

    Project Team

    The following table provides a list of the project team members assigned to Team A2K.

    Name Contact Information

    Natasja K Allen [email protected]

    Rhonda R Barnhart [email protected]

    Tamame J Bunger [email protected]

    Ronald R Cingle [email protected]

    Jason E Connelly [email protected]

    Zachary Robert Fellers [email protected]

    Abiola O Isola [email protected]

    A r an E Just s ust s602 otma .com

    M c ae K. Kapom e M c ae Kapom e westat.com

    Michael Francis Kelly [email protected]

    3.0

    Project DescriptionHusky Air is a fixed base operator (FBO) facility providing a wide range of aviation

    services to its clientele. Husky Air has a growing reputation in the Midwest area, in particular for

    its charter service, maintenance, and flight instruction. As a FBO, Husky Air provides:

    Business jet, propjet, helicopter, and propeller aircraft charter

    Refueling

    Airframe, engine, propeller, and avionics maintenance Aircraft rental

    Flight instruction

    Pilot supplies

    In addition to its regular aviation business, Husky Air provides the community with a

    charitable service call Pilot Angels. People with health issues that require them to travel for

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    medical treatment are assisted by volunteer private pilots through Husky Air. In addition, Pilot

    Angels will transport donor organs, supplies, and medical personnel.

    Husky Air, consisting of a staff of 23 employees composed of pilots, mechanics, and office

    staff, currently uses a manual paper-based system to coordinate the air transportation efforts of

    Pilot Angels. A pool of pilot volunteers is kept in a file folder. If a hospital or person with a

    medical or financial hardship contacts Husky Air, information about the traveler and the details

    of the request are recorded onto paper forms. Once all information is recorded, Husky Air

    contacts volunteer pilots from the pool of volunteers stored in the file folder to determine their

    availability and ability to satisfy the request. Although a volunteer pilot may be willing and

    available for a Pilot Angel flight, the aircraft may not have the range or weight-carrying

    requirements. The current process in use is inefficient since many pilots may have to be

    contacted until a pilot and suitable aircraft can be found.

    Husky Air is currently in need of a computer-based system to track its Pilot Angels

    volunteers. The proposed initiative is the development a Husky Air Reservation System (HARS)to keep track of all Pilot Angels volunteer pilots to include their name, address, phone numbers,

    as well as their total hours, certifications and ratings. The system will also have information

    about the type of aircraft such as the type of plane, aircraft identification number, whether the

    aircraft is single or multi-engine, its capacity for carrying passengers and the number of aircrafts

    each pilot owns. The HARS will also provide easy input, storage, and output of information

    about the people, hospitals, clinics, and organ banks who request the information about the

    patients, their passengers, and specific needs to help match volunteers with the request for

    transport. In addition, The HARS will fully automate much of the scheduling process by

    providing a tool for collaboration between all parties involved, in addition to a flight tracking

    utility that will help in the effort to recognize Pilot Angels volunteers for their contributions.

    Moreover, the system will allow Husky Air a list of all Pilot Angeles flights to include:

    The pilot who flew the flight

    The passengers on board

    The plane that was used

    The total time of the flight

    The distance and destination of the flight

    The date and time of the flight

    The total fuel used

    These objectives will be achieved by Husky Air Reservation System (Marchewka, 2009, p. 29-

    30).

    4.0 Measurable Organizational Values

    A business case provides an analysis of the business value, several alternatives for

    achieving the projects MOV, the feasibility of the alternatives, as well as their costs, benefits,

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    and risks. (Marchewka, 2009, p.69). A key part of the Business Case is defining the Measurable

    Organizational Values (MOVs) for the proposed project. A MOV is a measurable and

    verifiable target objective that provides value to the organization and is used to evaluate the

    projects success. (Marchewka, 2009, p. 44-45). The MOVs will be broken down by their

    desired area of impact, the desired value of the project, the appropriate metric to measuresuccess, and the timeframe. A summary of the MOVs will then be provided.

    Desir ed Area of I mpact

    According to McHugh & Associates (1998), Fixed Base Operator (FBO) is an individual,

    firm or corporation leasing space and operating at the airport and providing one or more general

    aircraft services to the public, such as maintenance, storage, ground and flight instructions, etc.

    FBOs provide a wide range of services at an airport, and FBOs have heavily discounted rents for

    office and hangar space in exchange for the promise to buy certain volumes of fuel. Repair

    shops and charter services are other services an FBO can offer, but the underlying objective is to

    offer as many services as possible to increase the sale of fuel (Larson, 2008).

    As FBO, Husky Air is focused on improving their Pilot Angels program. Although this is a

    volunteer program, it is becoming a highly visible program within the Midwest community.

    Therefore it is critical to Husky Airs business reputation that the program is run asefficiently as

    possible. While the major impact of the project will be in operations, the success of the project

    impacts Husky Airs business strategy as well.

    The success of this project will have a favorable impact on Husky Airs business

    operations. Once implemented, a computer based system will help streamline operations and

    reduce costs. Improvements to the current process used to match potential customers with

    company aircraft and pilots will make the process more effective (better match of aircrafts toclient needs) and more efficient (faster response to requests for assistance). As their computer

    based record keeping system evolves improvements to the supply chain operations may be

    realized with the implementation of a company intranet accessible to suppliers who are critical to

    inventory needs, such as suppliers of fuel and aircraft parts. The improvements made in the Pilot

    Angels program can serve as a prototype in other business operations areas.

    A successful and highly regarded Husky Air Reservation System (HARS) will generate

    word of mouth advertising and help to grow Husky Airs visibility as a full service provider in a

    competitive market. The success of the Husky Air Reservation System (HARS) is in effect good

    advertising for Husky Air and should help provide a competitive advantage in the health servicesindustry. Indeed, word of mouth success might lead to new and possibly unexpected business

    opportunities. Running a highly visible and successful charity program to gain a foothold in a

    strategic business area is at once a creative and game changing approach to competition within

    the market. Building a successful relationship with the communities they serve through such a

    program highlights the companys commitment to their customers and should only serve to

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    enhance their business reputation. This in turn should act as a catalyst for increasing the

    companys market share.

    The table below reflects the priority of the potential areas of impact for this project:

    Rank Potential Area ofImpact

    Desired Impact

    1 Operational

    Ensuring that operations are streamlined and moreeffective

    Replace manual process with more efficient automatedprocess.

    2 Financial Increase fuel sales from more pilots joining Pilot Angels

    program

    Increase profit margins from improved corporate image

    3 Customer Improve customer services to both pilots and patients

    Transaction processes are more effective and efficient

    4 Social Educating everyone about the pilot angels and their

    program, leading to an increase in business

    Support a larger number of patients

    Reduce delivery time of donor organs

    5 Strategic Taking advantage of cause related marketing to increase

    market share (already in progress)

    Desired value of the ProjectAt the moment more than ever, Husky Air needs to invest in order to help its business run

    more efficiently. Husky Air wants to improve how they operate Pilot Angels by upgrading to a

    computer based system that matches clients with pilots. In other words,they want to build a

    better interface for the clients and pilots. The value gained from doing the program better will be

    realized as the new model propagates to other business areas within Husky Air. The new system

    should help office personnel to administer the Pilot Angels program in a similar manner to what

    they do now, but without the time-consuming manual processes. Less effort will be needed to

    locate information about pilots and their availability because it will all be stored and accessed in

    one place. The data will be accessible with just a few mouse clicks.

    Another value gained by improving the process is that the process of matching clients with

    pilots will be more efficient and therefore faster. There is an implied risk in the Pilot Angel

    program that arises from the fact that some of the medical cases they become involved with are

    going to be time critical. For example, the transport of donor organs in a timely manner may

    have life or death consequences in some cases. Since the program is tied so closely to the Husky

    Air business reputation, there is real value added in improving process efficiency.

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    In summary, the values can be categorized as Bigger, Better, Faster, Cheaper, or Do More:

    1. Bigger: Husky Air wants to increase the size of the Pilot Angels program by recruiting

    more pilots, maintaining contact information and flight specific particulars of the

    patients, and reaching out to more medical facilities that would require the charitable

    service.

    2. Better: Husky Air wants to be more efficient at maintaining pilot and aircraft data as well

    as scheduling charter and Pilot Angels flights. They want to move from paper records to

    digital records.

    3. Faster: Husky Air wants to be able to quickly scan pilot, aircraft, charity client, medical

    facility, etc. data to schedule charter and Pilot Angels flights.

    4. Cheaper: Husky Air wants a system that will reduce steps and increase productivity when

    searching for a pilot and aircraft for Pilot Angels requests.

    5. Do More: The proposed computerized tracking and scheduling system will provide data

    and process requests for the non-profit Pilot Angels program and for the for-profit FBO.

    This will increase overall revenues, provide benefits to their customer base; pilots that

    rent and own small aircraft, and help them reach out and service more medical hardship

    patients in need.

    Appropriate Metri c & Timeframe for Achieving MOV

    Working with hospitals, health care agencies, and organ banks, the Pilot Angels program

    currently provides transportation services for patients, medical personnel, donor organs, and

    medical supplies each year. Current operations require a lead time of 7 to 10 business days in

    order to match potential clients with pilots and aircraft. Reducing this overhead to 3 days

    (including weekends for emergency cases) will lead to an improvement of better than 50% in

    response time. In addition, Husky Air captures only about a third of the information they would

    like to retain from each flight or pilot request. An improved operations approach increases their

    data acquisition capability by nearly 70%.

    The visibility of the Pilot Angel program in the Midwest coupled with a successful,

    efficient operational approach offers Husky Air the opportunity to leverage this success in their

    strategic business plan and gain a competitive advantage. With improved data acquisition

    capabilities, it will be possible to track new business opportunities back to Pilot Angel

    participants. Husky Air should see an increase of 3% per year in new business opportunities

    obtained from Pilot Angels referrals or associations.

    Response time should be improved by 50% as soon as the new approach goes into

    operation. Data Acquisition capability should improve immediately as well, however, there will

    be a lag time for the measureable since data has to accrue before measurements can be taken.

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    Gains should be evident within the first 6 months of operation. Gains in new business

    opportunities attributable to the Pilot Angel program of 3% should be measureable after 18

    months of operation. The new computer system (HARS) will reduce average flight scheduling

    completion times by 50% (from an average of 48 hours to no more than 24 hours), increase the

    number of Pilot Angels customers and volunteers by 30%, decrease overall annual spending by15%, increase sales by 10%, and increase the annual revenue growth rate to 20% within 3 years

    of the project completion with an expected advantage for at least 6 years. The resulting

    efficiencies should also allow the addition of more services to the Pilot Angels program.

    The use of Husky Air Reservation System will create the above results by fully automating

    most of the activities involved in the current Pilot Angels scheduling process and allowing for

    alternative methods of communicating with volunteer pilots, patients, and medical parties.

    Additionally, the HARS will allow Husky Air to manage additional volunteer pilots, which

    would create opportunities to double the number of flights conducted each week without any

    impact on staffing and current workloads. By improving the effectiveness of Pilot Angels,Husky Air will receive an increased market share of 10% and increase current annual growth

    (revenue) rates by 20% within the first 3 years of HARS completion. Assuming that the Pilot

    Angels program has already helped improve the corporate image and increase sales, an improved

    system is estimated to provide a 10% increase in sales. Once the new system is implemented,

    office employees will need to be placed in new positions within the company within 6 months. It

    is assumed that Husky Air will be responsible for retraining or repositioning displaced

    employees within the company.

    Summarized MOV

    The following table summarizes the MOV statements for this project:

    Desired Area of

    Impact

    Desired Value Metric Time Frame

    Social Promote brand name in community: support a

    larger number of patients

    Increase the number

    of patients by 30%

    12 months

    Customer Improved customer service and overall

    customer experience

    Reduced waiting time

    for finding flights by

    50%

    12 months

    Financial Reduced expenditures

    Increased profit and reduce cost by reducing

    the time it takes to schedule an appointment.

    Improve corporate image and increase

    business

    15% reduction in

    overall expenditures

    due to automation

    Reduce scheduling

    time by 80%

    10% increase in fuel

    sales

    12 months

    18 months

    Within first year

    of operation

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    Strategic Expand customer base through partnerships

    Improved effectiveness and increased

    regional recognition of Pilot Angels

    Gains in new business opportunities

    attributable to the Pilot Angel program and

    Expansion of services

    Increase number of

    partnerships with

    hospitals, health care

    agencies, and organ

    banks by 20%

    Increase number of

    volunteer pilots by

    30%

    Increase market share

    in region by 10%

    36 months

    36 months

    36 months

    Operational Reduced response and completion times in

    matching medical requests and proper

    volunteer support

    Lower operation costs and operational

    efficiencies and effectiveness.

    No more than 24

    hours

    70% increase in data

    acquisition capability.

    50% reduction in

    office personnel

    6 months

    6 months

    6 months

    All these MOVs can be combined into two MOVs statements:

    MOV1: Implementing the Husky Air Reservation System (HARS) will result in a 10% increase

    in market share which will result in a 20% increase in revenues within one year of completion of

    the new system and to continue for at least three years. The increase in market share will come

    via the following areas: 1. Average flight scheduling completion times reduced by 50% (from an

    average of 48 hours to no more than 24 hours). 2. Increase in the number of pilot angels

    customers and volunteers by 30% due to the promotion of Husky Air in community and

    partnerships with hospitals and other organizations. 3. Increase in flights by 30% (patients and

    customers) due to the ability to better schedule appointments and therefore 80% reduction in

    missed flights: 40% of the increased flights will come from new pilots angels attracted to husky

    air because of the improve system and 60% will come from existing pilots expanding to new

    businesses. 4. And decrease in overall annual spending by 15%.

    MOV2:Implementing the Husky Air Reservation System (HARS) will result in 50% reduction

    in office personnel in charge of the pilot angels program within 6 months of completion of the

    new system and will remain reduced for at least 5 years. The reduction of office personal in

    charge of scheduling will come via the introduction of the improved automated system which

    will automate the current pilot angels scheduling process and flights tracking system.

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    5.0

    Alternative AnalysisSeveral alternatives were considered for Husky Airs Pilot Angels software system. Husky

    Air could either choose to maintain the status quo (Alternative A), purchase a software package

    (Alternative B), or build a custom system (Alternative C). The status quo option is known as the

    base case alternative, which describes how Husky Air would perform if it chose not toimplement a new system and instead stay with its current manual, paper-based system

    (Marchewka, 2009, p. 51). In order to assess each of the alternatives, the total cost of ownership

    and the total benefits of ownership will be considered.

    Total Cost of Ownershi p

    The costs of each of the alternatives needs to be considered, including the costs to acquire,

    develop, and maintain the system. This includes a list of all possible cost impacts during the

    course of the life of the system (Marchewka, 2009, p. 52-53). These costs include:

    Direct or up-front costs: Costs that have a specific product or service that is purchased

    such as hardware, software, telecommunications equipment, setup costs, and consultantfees (Marchewka, 2009, p. 53)

    Ongoing costs: Costs that will be incurred throughout the life of the project, such assalaries, licensing fees, and customer support fees (Marchewka, 2009, p. 53)

    Indirect Costs: Costs that a project might incur, such as loss of productivity, qualityassurance, or reviews (Marchewka, 2009, p. 53)

    The table below lists each of the initial costs associated with each of the three alternatives:

    Explanation Alternative

    A

    Alternative

    B

    Alternative

    C

    Project Staff

    (personnel)

    Bdevelopment team:Database Admin + DataAnalyst + Benefits andproject manager, 14 weeks(560 hours each)

    CAll development team(DBA, Data Analyst, and QATester + project manager, 14weeks (560 hours each)

    0.00 83,300.00 110,260.00

    Hardware 3 PCs, Workstations,Server, network, Router,Firewall, Switch, EthernetCables, UPS

    0.00 8,438.00 8,438.00

    Software BStandard FBO Managerfor $7500.00, MySQLlicense per year for 2000(MySQL Editions, 2012), and

    0.00 10,700.00 3,200.00

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    development tools supportper year ($1,200 per year)(Oracle Support, 2012)

    CMySQL license per yearfor 2000 (MySQL Editions,

    2012), development toolssupport per year ($1,200 peryear) (Oracle Support, 2011)

    Training 2 day On site training @$600 per day

    0.00 0.00 1,200.00

    Project team resources Office space, utilities,technology, communications,

    0.00 10,355.00 10,355.00

    Maintenance

    support

    @$385/year. 0.00 385.00 385.00

    Computer Technician (part time)23.75 per hr - 80hours

    0.00 1,900.00 1,900.00

    Total 0.00 115,078.00 135,738.00

    In the table above alternative A cost the least amount but is also the least reliable and willeventually increase in expenses in order to maintain the status quo system. Alternative B costsmore than alternative A and is more reliable, and very efficient. But will require additionexpense to meet all the needs of Husky Air. Alternative C costs the most initially, however, itwill require the least expense (primarily maintenance) in the future and meets all the needs of

    Husky Air.

    Total Benefi ts of Ownership

    The total benefits of ownership are defined as the benefits offered during the course of the

    life of the system (Marchewka, 2009, p. 53). The new system will not only improve the

    efficiency of this program, but also provide new services, such as recognizing volunteers for

    their contributions.

    TBO for all three alternatives are focused on the following:

    Increasing high value work

    Improving accuracy and efficiency

    Improving decision making

    Improving customer service

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    The table below shows the ratings from 1 to 5 based on the importance of the benefits for eachalternative; 1 being the lowest rating and 5 the highest rating. Alternative C has the highestrating following by alternative B and then alternative C in regards to being efficient, improvingaccuracy, customer service and decision making.

    Total Benefits of OwnershipDirect, Indirect, Ongoing

    Benefits

    Alternative A Alternative B Alternative C

    Track of all pilots 1 4 5

    Type of aircraft 2 4 4

    Clients/Passengers Info. 3 5 5

    Hospitals/Clinics/OrganBanks

    3 5 5

    Flight information 3 5 5

    The table below lists the Net Present Value (NPV) of Alternative A, Alternative B, andAlternative C based on the total net cash flow, and 8% discounted cash flow estimates. TotalNet Cash is computed based on total estimated revenues minus total cost of the project.

    ALTERNATIVE A (STATUS QUO)

    Year 0 Year 1 Year 2 Year 3 Year 4

    Operating revenue

    Aircraft maintenance$1,123,345 $1,011,010 $909,909 $818,918 $737,027

    Charter services $925,751 $833,176 $749,858 $674,873 $607,385

    Aircraft sales $1,125,394 $1,069,120 $1,015,660 $964,877 $916,633

    Fuels sales $162,915 $146,623 $131,961 $118,765 $106,888

    Hangar rental $137,518 $123,766 $111,389 $100,250 $90,225

    Flight instruction $82,863 $78,719 $74,783 $71,043 $67,490

    Total revenue $3,557,786 $3,262,414 $2,993,560 $2,748,726 $2,525,648

    Operating expenses

    Payments to suppliers $769,516 $792,601 $816,380 $840,871 $866,097

    Contractual services $363,625 $369,079 $374,616 $380,235 $385,938

    Repairs and maintenance $225,572 $220,070 $225,572 $228,956 $232,390

    Materials and supplies $201,762 $207,815 $214,049 $220,471 $227,085

    General & Administrative $201,121 $203,132 $205,164 $207,215 $209,287

    Rent to Airport $79,591 $79,591 $79,591 $83,570 $83,570

    Depreciation $45,899 $46,817 $47,754 $48,709 $49,683

    Total expenses $1,887,086 $1,919,105 $1,963,126 $2,010,027 $2,054,050

    Net Cash Flow $1,670,700 $1,343,309 $1,030,434 $738,699 $471,598

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    Summary: Steady decreases in operating revenue accompanied by rising increases in operating costs.Husky Air would see losses of 10% /yr in aircraft maintenance, sales, and hangar rentals, and 5%/yrin charter services and flight instruction business.

    ALTERNATIVE B (COTS)

    Year 0 Year 1 Year 2 Year 3 Year 4Operating revenue

    Aircraft maintenance $1,123,345 $1,089,645 $1,122,333 $1,156,004 $1,190,684

    Charter services $925,751 $897,978 $924,917 $952,665 $981,245

    Aircraft sales $1,125,394 $1,091,632 $1,058,883 $1,027,116 $996,303

    Fuels sales $162,915 $158,027 $153,286 $150,220 $147,215

    Hangar rental $137,518 $123,766 $111,389 $100,250 $90,225

    Flight instruction $82,863 $80,377 $81,181 $82,805 $85,289

    Total revenue $3,557,786 $3,441,425 $3,451,989 $3,469,060 $3,490,961

    Operating expenses

    Payments to suppliers$769,516 $792,601 $816,380 $840,871 $866,097

    Contractual services $363,625 $369,079 $374,616 $380,235 $385,938

    Repairs and maintenance $225,572 $228,956 $232,390 $237,038 $241,778

    Materials and supplies $201,762 $207,815 $214,049 $220,471 $227,085

    General & Administrative $201,121 $207,154 $200,939 $194,910 $189,062

    Rent to Airport $79,591 $79,591 $79,591 $83,570 $83,570

    Depreciation $45,899 $46,817 $47,754 $48,709 $49,683

    Total expenses $1,887,086 $1,932,013 $1,965,719 $2,005,804 $2,043,213

    Net Cash Flow $1,670,700 $1,509,412 $1,486,270 $1,463,256 $1,447,748

    Summary: Purchase of a COTS package (FBO Manager, $7500) and IT equipment ($1500for three workstations) are completed to make the Pilot Angel program more efficient. Theupgrade helps create a strategic advantage for Husky Air due to the programs visibility. Aircraftmaintenance and sales decrease at significantly lower rate (3%/yr). The charter services andflight instruction business decreases 3% the first year then rebound to gains of 3%/yr as a resultof the increased awareness of product due to the favorable impression created by the efficientPilot Angels operation.

    ALTERNATIVE C (CUSTOM)

    Year 0 Year 1 Year 2 Year 3 Year 4

    Operating revenueAircraft maintenance $1,123,345 $1,089,645 $1,122,333 $1,156,004 $1,190,684

    Charter services $925,751 $897,978 $924,917 $952,665 $981,245

    Aircraft sales $1,125,394 $1,091,632 $1,058,883 $1,027,116 $996,303

    Fuels sales $162,915 $158,027 $153,286 $150,220 $147,215

    Hangar rental $137,518 $123,766 $111,389 $100,250 $90,225

    Flight instruction $82,863 $100,377 $111,181 $82,805 $85,289

    Total revenue $3,557,786 $3,461,425 $3,481,989 $3,469,060 $3,490,961

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    Operating expenses Year 0 Year 1 Year 2 Year 3 Year 4

    Payments to suppliers $769,516 $792,601 $816,380 $840,871 $866,097

    Contractual services $363,625 $369,079 $374,616 $380,235 $385,938

    Repairs andmaintenance

    $225,572 $228,956 $232,390 $237,038 $241,778

    Materials and supplies $201,762 $207,815 $214,049 $220,471 $227,085

    General &Administrative

    $201,121 $207,154 $200,939 $194,910 $189,062

    Rent to Airport $79,591 $79,591 $79,591 $83,570 $83,570

    Depreciation $45,899 $46,817 $47,754 $48,709 $49,683

    Total expenses $1,887,086 $1,932,013 $1,965,719 $2,005,804 $2,043,213

    Net Cash Flow $1,670,700 $1,529,412 $1,516,270 $1,463,256 $1,447,748

    Summary: Implementation of a custom application developed at a cost of ~$135K the first year

    is completed to make the Pilot Angels operation more efficient. The upgrade helps create astrategic advantage for Husky Air due to the programs visibility. Aircraft maintenance and salesdecrease at significantly lower rate (3%/yr). The charter services and flight instruction businessdecreases 3% the first year then rebound to gains of 3%/yr as a result of the increased awarenessof product due to the favorable impression created by the efficient Pilot Angels operation.

    Total Net Cash FlowAlternatives Year 0 Year 1 Year 2 Year 3 Year 4

    A 1,670,700 1,343,309 1,030,434 734,699 471,598

    B 1,670,700 1,509,412 1,486,270 1,463,256 1,447,748

    C 1,670,700 1,529,412 1,516,270 1,463,256 1,447,748

    Discounted Cash Flow= (Net Cash Flow) / (1 + Discount Rate)year

    NPV CALCULATION FOR ALTERNATIVE A (8% Discount Rate)Time Period Calculation Discounted Cash Flow

    Year 0 1,670,700 1,670,700.00

    Year 1 1,343,309/(1+0.08)1 1,243,804.63

    Year 2 1,030,434/(1+0.08)2 883,431.07

    Year 3 734,699/(1+0.08)3 583,094.44

    Year 4 471,598/(1+0.08)4 346,763.24

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    NPV 4,727,793.38

    NPV CALCULATION FOR ALTERNATIVE B (8% Discount Rate)Time Period Calculation Discounted Cash Flow

    Year 0 1,670,700 1,670,700.00

    Year 1 1,509,412/(1+0.08)1 1,397,603.70

    Year 2 1,486,270/(1+0.08)2 893,191.11

    Year 3 1,463,256/(1+0.08)3 1,161,314.29

    Year 4 1,447,748/(1+0.08)4 1,064,520.59

    NPV 6,187,329.69

    NPV CALCULATION FOR ALTERNATIVE C (8% Discount Rate)Time Period Calculation Discounted Cash Flow

    Year 0 1,670,700 1,670,700.00

    Year 1 1,529,412/(1+0.08)1 1,416,122.22

    Year 2 1,516,270/(1+0.08)2 1,299,957.13

    Year 3 1,463,256/(1+0.08)3 1,161,314.29

    Year 4 1,447,748/(1+0.08)4 1,064,520.59

    NPV 6,612,614.23

    The estimates from this table show that Alternative C has the greatest NPV when compared

    to Alternative A and Alternative B. The custom built database system is the superior alternative

    for Husky Air Pilot Angles. It provides long term cost effective solutions for its current situation,

    and will be most proficient at handling Husky Air specific needs.

    6.0

    Recommendation

    After comparing alternative solutions, it is evident that if Husky Air continues with the

    status quo, the manual equipment and flight lesson system, Husky Air will not be able to fulfill

    the strategic plan to increase market share. They will also not fulfill an operational plan to

    increase operational efficiencies and effectiveness. The status quo restricts operational

    complexity and thus limits future growth. The current system does not have the ability to

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    efficiently track information about the customers, the equipment and the pilots. It is a time

    consuming system for scheduling equipment and flight lessons. With the manual system,

    employees can easily make errors. The status quo will not require any substantial capital outlay

    in the near term but definitely restricts operational efficiencies and increase market share in the

    long term.

    Husky Air can purchase an electronic Reservation System from a vendor. This alternative

    is better than maintaining the status quo. A reservation system from a vendor will have

    limitations in that modules or components may or may not fit the current business model. The

    modules may or may not be adapted, but if so, this will add expense to the project. To purchase

    a package reservation system from a vendor will be less expensive than a customized reservation

    system.

    Husky Air can contract to have a reservation system built from a software development

    vendor. While this option will be the most expensive, it will provide maximum customization

    that will allow Husky Air to track all of the information it needs to and interface with an

    accounting system. Given growth projections, it is felt that Husky Air revenues will increase

    over a three year period.

    Although the initial design and implementation of the custom design is much higher

    than the COTS system, the support and upkeep of the system is cheaper than that of the COTS

    system. The custom system will likely take up to six months to design and has a higher initial

    startup cost but the training; installation of the program will be part of the design cost. A2K

    recommends that Husky Air choose a custom design option for the HARS.

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    Husky Air Reservation

    System Project Infrastructure

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    1.0

    Introduction and Poject Name

    Team A2K has been hired to work on the Husky Air Reservation System project in order to

    build a software system to track Husky Air Pilot Angel volunteers, store pilots basic information,

    total hours, certifications, and ratings.

    2.0 Project Team

    The following table provides a list of the project team members assigned to Team A2K.

    Name Contact Information

    Natasja K Allen [email protected]

    Rhonda R Barnhart [email protected]

    Tamame J Bunger [email protected]

    Ronald R Cingle [email protected]

    Jason E Connelly [email protected]

    Zachary Robert Fellers [email protected]

    Abiola O Isola [email protected]

    Adrian E Justis [email protected]

    Michael K. Kapombe [email protected]

    Michael Francis Kelly [email protected]

    3.0 Project Measurable Organizational Value

    The following table provides a summary of the MOVs by listing the desired areas ofimpact and desired values, and the metrics and time frames associated with each:

    Desired Area of

    Impact

    Desired Value Metric Time Frame

    Social Promote brand name in community: support a

    larger number of patients

    Increase the number

    of patients by 30%

    12 months

    Customer Improved customer service and overall

    customer experience

    Reduced waiting time

    for finding flights by

    50%

    12 months

    Financial Reduced expenditures

    Increased profit and reduce cost by reducing

    the time it takes to schedule an appointment.

    Improve corporate image and increase

    business

    15% reduction in

    overall expenditures

    due to automation

    Reduce scheduling

    time by 80%

    10% increase in fuel

    sales

    12 months

    18 months

    Within first year

    of operation

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    Strategic Expand customer base through partnerships

    Improved effectiveness and increased

    regional recognition of Pilot Angels

    Gains in new business opportunities

    attributable to the Pilot Angel program and

    Expansion of services

    Increase number of

    partnerships with

    hospitals, health care

    agencies, and organ

    banks by 20%

    Increase number of

    volunteer pilots by

    30%

    Increase market share

    in region by 10%

    36 months

    36 months

    36 months

    Operational Reduced response and completion times in

    matching medical requests and proper

    volunteer support

    Lower operation costs and operational

    efficiencies and effectiveness.

    No more than 24

    hours

    70% increase in data

    acquisition capability.

    50% reduction in

    office personnel

    6 months

    6 months

    6 months

    All these MOVs can be combined to two MOVs statements:

    MOV1: Implementing the Husky Air Reservation System (HARS) will result in a 10% increase

    in market share which will result in a 20% increase in revenues within one year of completion ofthe new system and to continue for at least three years. The increase in market share will come

    via the following areas: 1. Average flight scheduling completion times reduced by 50% (from an

    average of 48 hours to no more than 24 hours). 2. Increase in the number of pilot angels

    customers and volunteers by 30% due to the promotion of Husky Air in community and

    partnerships with hospitals and other organizations. 3. Increase in flights by 30% (patients and

    customers) due to the ability to better schedule appointments and therefore 80% reduction in

    missed flights: 40% of the increased flights will come from new pilots angels attracted to husky

    air because of the improve system and 60% will come from existing pilots expanding to new

    businesses. 4. And decrease in overall annual spending by 15%.

    MOV2:Implementing the Husky Air Reservation System (HARS) will result in 50% reduction

    in office personnel in charge of the pilot angels program within 6 months of completion of the

    new system and will remain reduced for at least 5 years. The reduction of office personal in

    charge of scheduling will come via the introduction of the improved automated system which

    will automate the current pilot angels scheduling process and flights tracking system.

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    g. Uninterruptible Power Supply for firewall 64 minutes, APC Smart-UPS 750VALCD 120V: $320 (APC.com, Smart-UPS 750VA, 2012)

    h. Uninterruptible Power Supply for workstations 53 minutes, APC Smart-UPS1000VA LCD 120V: $435 (APC.com, Smart-UPS 1000VA, 2012)

    2.

    Database Software LicenseMySQL requires a yearly licensing fee that includes accessto various features, upgrades, and support. The yearly fee is $2,000 for the standardedition (MySQL Editions, 2012).

    3. Telecommunications softwareFree Tiny Chat teleconferences andFreeConferenceCalls.com for conference calls

    4. Voice/Data plan - $119.98/month per user. (Unlimited Calling and Email Plans, 2012).

    5. Printer/Fax/Copier: $350 (IntelliFax-4100e B-Class Laser Fax, 2012)

    6. Microsoft Project Standard 2010: $399 (Project Standard 2010 Full Retail Box, 2012).

    Facilities

    1. Office space for development and testing: $1025/month, $6150 for 6 months in Chicago

    area near DeKalb Municipal Airport

    2. Utilities for office space: $300/month (Whitefenceindex.com, 2012).

    3. Conference Room when on site at Husky Air for meetings

    Other

    Office supplies: $100 per month

    The table below provides details for the resource costs:

    Item Total

    Number Cost ea. Total Cost

    Personnel

    Project Manager - per hr (inc.

    benefits) - 14 wks 560 $ 53.75 $ 30,100.00

    Database Administrator - per hr

    (inc. benefits) - 14 wks 560 $ 48.75 $ 27,300.00

    Data Analyst - per hr (inc. benefits)

    - 14 wks 560 $ 46.25 $ 25,900.00

    Quality Assurance Tester - per hr

    (inc. benefits)- 14 wks 560 $ 44.75 $ 25,060.00

    Computer Technician (part time) -

    per hr - 80 hours 80 $ 23.75 $ 1,900.00

    Subtotal $ 110,260.00

    HardwareWorkstation 3 $ 649.00 $ 1,947.00

    Database Server 1 $ 1,149.00 $ 1,149.00

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    Network Switch 1 $ 325.00 $ 325.00

    Bulk cable - 500 ft. 1 $ 80.00 $ 80.00

    Firewall 1 $ 664.00 $ 664.00

    UPS for server 1 $ 830.00 $ 830.00

    USP for firewall 1 $ 320.00 $ 320.00UPS for workstation 3 $ 435.00 $ 1,305.00

    Subtotal $ 6,620.00

    Software MySQL License - one year 1 $ 2,000.00 $ 2,000.00

    Internet service + phone/month 6 $ 75.00 $ 450.00

    Project Team

    Resources

    Voice/data plan 6 $ 120.00 $ 720.00

    Printer/Fax/Copier 1 $ 350.00 $ 350.00

    Laptop 1 $ 786.00 $ 786.00

    MS Project Standard 1 $ 399.00 $ 399.00

    Subtotal $ 2,705.00

    FacilitiesOffice space lease -per month 6 $ 975.00 $ 5,850.00

    Utilities - per month 6 $ 300.00 $ 1,800.00

    Subtotal $ 7,650.00

    Other Office supplies - per month 6 $ 100.00 $ 600.00

    Subtotal $ 600.00

    Total Cost $ 129,835.00

    5.0

    The Scope Management Plan

    The project requires to be completed according to the particular structure. In order to

    create the most appropriate structure, deliverable structure chart (DSC), use case diagram

    (UCD), and scope change process must be created, developed, and appropriately revised if

    necessary.

    Deliverable Structur e Char t

    HARS is a complex system that requires thorough approach to its creation. In addition, its

    paper-based analog that is in action now can still be used to assure continuity of Husky Air

    operations. Therefore, it has been decided to choose prototyping model to develop HARS. The

    system has to be utterly reliable so each phase must be tested and revised until full compliancewith initial requirements. DSC should be as follows:

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    Use Case Diagram

    Scope Change Process

    HARS

    Busines

    s Client

    Commu

    nity

    Client

    HealthCare

    Client

    provide information about

    available pilots and carriers

    organize data input andoutput related to health care

    services

    organize data input and

    outpur related to community

    services

    monitor business

    activities

    Pilot

    Mechani

    c

    Office

    Staff

    Executiv

    e

    automate scheduling

    process

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    6.0

    The Work Breakdown Structure

    In general, HARS is a usual project that, however, will be implemented within the

    companys distributed offices. In addition, the specifics of the Husky Airs personnel on all

    levels will require extra efforts from the project training team to make sure that the system will

    be used by skillful and experienced operators. Therefore, we can conclude that the peculiaritiesof the project increase its overall cots.

    Bottom-up estimates

    The most effortful modules of the project development should be considered interface

    module and database management system. They are to take the vast majority of time of the

    developers. On the other hand, the development of user interfaces will require less time. In

    addition, they will be continuously improved during the entire process of the project

    development so the elapsed time cannot be considered in this case as the longest one.

    Plan to create controllable activiti es

    DBMS and interface modules creation will require rather substantial effort to complete

    them. Therefore, the process of their development should be divided into series of smaller

    activities. It will be necessary to perform because of the complexity and scale of the objectives to

    accomplish. These modules should be developed in stages: basic functionality development,

    additional modules, testing, improvement, closure. User interfaces for all modules can be

    completed together, by one team of developers and users should test them together as well. It

    will provide the developers with opportunities to improve and fix any issues at once.

    Risks for activiti es

    The project is large-scale. Therefore, the risks of different kind are inevitable. The major

    risks for interface module: inability to achieve acceptable results within timeframe given for this

    activity; inability to assure accurate scheduling and its analysis; and low module performance.

    Therefore, in case of inability to achieve acceptable results within timeframe the schedule of the

    project will have to be adjusted accordingly, since it is one of the core modules of HARS. It

    means loss of time, which is unacceptable for Husky Air plans. As for the second risk, it could

    be even more dangerous for the company than any other possible risk.

    The core function of Husky Air is transportation, commercial and other. Therefore, if

    schedule is incorrect, it is impossible to perform business activities. This risk can substantially

    slow down the implementation of the entire project, so time loss is guaranteed. Finally, low

    performance of the module can slow down the performance of the entire company. It can be

    rather costly. As for other activities, the second biggest risk to occur is the inappropriately

    designed and configured DBMS. Other modules and related activities should not be considered

    in the light of risks they can provoke, since their effects are minimal.

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    The likelihood of the risks occurring can be described as follows: inability to achieve

    acceptable results within timeframe given for this activitymoderate; inability to assure

    accurate sheduling and analysismoderate; low module performancelow; and inappropriately

    designed and configured DBMSlow. The reason of such likelihood determination is in the

    efforts applied to avoid them. Project managers team should realize these major possible issuesand be prepared accordingly.

    Risk assessment Importance Likelihood

    Inappropriate results within timeframe Moderate Moderate

    Lack of accuracy of scheduling module Hi Moderate

    Low module performance Moderate Low

    Inappropriately designed and configured DBMS Hi Low

    Risk reduction and contingency measures

    In order to mitigate possible negative aftereffects of the risks, it will be necessary to

    perform the following activities: software development team should hire only the best specialists

    in the area; the most advanced methods and tools should be applied to achieve accurate and

    correct results; in order to improve performance in case of its insufficiency, the additional

    hardware should be acquired; the most advanced but yet balanced DBMS should be reconfigured

    and installed, in addition to hiring the best specialists in this area. If risks did occur, the

    following steps should be performed: the additional specialists should be hired so solve theabove-mentioned issues; in addition, more advanced hardware and software might be required to

    be purchased.

    Overall plans and estimates considering r isks

    In order to mitigate possible risks, the following activities should be included into the

    project plan: it would be necessary to create the test versions of each module and evaluate the

    time needed for their development; in case of moderate likelihood of risks occurrence it the

    above-mentioned steps should be performed (hiring of the additional personnel, hardware

    purchase, etc.). All parties involved into the software development stages should be additionallyinformed regarding the importance of each issue during this stage. In case of necessity, the

    development stage should be delayed for the time needed for additional training of the

    developers teams.

    Resour ces to activit ies

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    Project plan presupposes three major stages: creation and implementation of HARS;

    development of the network infrastructure; and personnel training. The first stage will be

    completed by third party, the developer of the appropriate systems. This stage will require

    minimum of Husky Airs resources because the specialists of third party will be the major

    resource for this stage. The second stage will be completed by the third party contractor and willnot involve resources of Husky Air as well. However, the personnel training stage will require all

    personnel, regardless of the level, be available for the appropriate training sessions.

    It could be difficult because Husky Air will not shut down its operations therefore, the

    staff will continue work. It is the major resource constraint for the timely resource allocation for

    the appropriate project completion. In addition, some part of the personnel will be on the

    scheduled vacations therefore, they will not be accessible as well.

    HARS will require the following resources for its successful completion: a system analyst

    with a team; programmers; database designers; interface designers; network administrator team;

    and training specialists. Husky Air personnel will be required as well, as it has been already

    mentioned in the previous sections. These specialists will require special tools and software that

    will be provided by third party (database development software, client-server software, etc.). The

    system analyst and the team will work on the initial stage of the project and will combine their

    efforts with programmers to create the appropriate design of HARS according to the

    requirements.

    Database designers will design and develop the necessary DBMS, using existing

    developments of third party as well as creating new modules for this system. Network

    administrator team will be necessary to create and manage network infrastructure of the future

    system. Interface designers will be used by all teams on the final stages of each module creation

    to develop the most appropriate and convenient interface for Husky Air stakeholders. Finally,

    training specialists will teach the Husky Air personnel to use HARS. All stages will involve the

    Husky Air personnel in different ways, discussed above.

    7.0

    The Project Schedule and Budget

    Considering the above-mentioned resource constraints, the plan should be revised in

    order to include the buffer zones for the deadlines of each stage completion. Due to the moderate

    possibility of risks occurrence in the project of such scale, human resources might be reallocated

    to solve various upcoming issues (additional staff for testing procedures, for example). Inaddition, such non-project activities as assessment of the available documentation, calculation of

    medical records to be transferred to the electronic form, communication with current customers

    to notify regarding the situation, etc. can substantially influence the availability of Husky Airs

    staff for project needs. Therefore, the time gaps should be added to each stage schedule to avoid

    deadlines failure and understand the real situation regarding the time needed for project

    completion.

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    Schedule is as follows:

    The project will take from 14 to 21 weeks in order to complete it, test, and implement into

    full working cycle of business operations. The project has a single critical path that is important

    because of the following constraints: DBMS and interface modules should be created before the

    scheduler module will be available to allow users test and understand the process of operationswith both modules. The project also does not have any over allocated resources.

    The budget of the project consists of the following resources and their costs:

    The quality of the entire project is determined by the quality of each stage completion. Of

    course, one or two secondary issues with quality will not make the project fail. However, in case

    of the overall low quality of execution even the best plan will not succeed. Thus, our plan

    presupposes completion of each stage within the limited timeframe and involves numerous

    parties. Such state of things can decrease its overall quality. The main attention should be

    emphasized during the stages that concern software development and network creation.

    Employees can be trained as long as it is necessary so this aspect of the plan will not affect its

    quality too substantially.

    8.0

    Earned Value Analysis

    Considering the need in thorough testing, Husky Air has decided to hire Bug Busters, an

    outsourced organization that specializes on software testing. The budget of the subproject is

    $12.000. The process of testing was divided into 4 stages and money was supposed to be paid

    accordingly. However, several issues and overpaid second period has made the project leader

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    worried regarding the further success of the project. Therefore, the need in earned value analysis

    has emerged.

    Earned value analysis (EVA) (another name is variance analysis) is meant to measure and

    evaluate performance of a project. The main principle of its work is to compare the planned

    amount of work with the one that has been already done in order to see if the project is on track

    or not. EVA was developed in the 1960s and was meant to provide government agencies with

    opportunity to see whether a contractor should have progress-based payments for work. Thus, it

    became a very helpful instrument for projects monitoring and control.EVA uses different

    calculations and ratios in order to measure and provide the appropriate information regarding the

    status of project work and its current effectiveness. Today, EVA is performed using electronic

    means (computers, spreadsheet software, etc.). However, it is important to understand how to

    perform calculations, know basics, and know how to interpret the obtained data. The following

    three key values are usually determined on the first step of EVA:

    1. Planned Value (PV) is the planned cost of work scheduled to be done in a given time

    period. The amount of PV is determined by totaling the cost estimates for the activities

    scheduled to be completed in the period. (Richman, 2002, p. 165).Another name of Planned

    Value is the Budgeted Cost of Work Scheduled (BCWS).

    2. Earned Value (EV) is the planned cost of work actually performed in a given time

    period. This is a measure of the dollar value of the work actually performed. The amount of

    EV is determined by totaling the cost estimates for the activities that were actually

    completed in the period. (Richman, 2002, p. 165).Another name of Earned Value is the

    Budgeted Cost of Work Performed (BCWP).

    3. Actual Cost (AC) is the cost incurred to complete the work that was actually performed

    in a given time period. The amount of AC is determined by totaling the expenditures for the

    work performed in the given time period. It should include only the types of costs included

    in the budget. For example, if indirect costs were not included in the budget, they should not

    be included in AC calculations. (Richman, 2002, pp. 165-166).Another name of Actual Cost

    is the Actual Cost of Work Performed (ACWP).

    Determination of these values provides with the necessary background for further measures.

    Thus, it is possible to utilize values in different combinations in order to determine the progress

    of accomplished work and if it is as planned. The following variances can be measured:

    Schedule Variance.Schedule variance can be calculated using the earned value and the

    planned value. This variance reflects the difference between the planned and the actual

    work completed.(Richman, 2002, p. 166). If a result is positive - the project is ahead of

    schedule; otherwise, the project is behind schedule.

    SV = EV - PV

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    Cost Variance.Cost variance can be calculated using the earned value and the actual cost.

    This variance reflects the difference between the planned (budgeted) cost and the actual

    cost of work completed.(Richman, 2002, p. 166). If a result is positive - the project is under

    budget; otherwise, the project is over budget.

    CV = EV - AC

    After the completion of these calculations, we can use different indices or ratios to assess the

    status and efficiency work under the project. These indicators of efficiency can give valuable

    information to be used in the project control. The schedule performance index and the cost

    performance index are indices that analytics use most commonly.

    l. Schedule Performance Index. A ratio of performed to scheduled work gives the

    understanding of the projects efficiency in the schedule. It is calculated as follows: the

    earned value is divided by the planned value. If a result is greater than 1 - the project is

    ahead of the schedule; otherwise, the project is behind the schedule. The analysis of the SPIfrom time to time during the project can show the progress of projects performance in

    comparison to the plan of the project. In addition, it can be utilized in order to build some

    projections regarding the completion date of the project.

    SPI = EV / PV

    2. Cost Performance Index. A ratio of budgeted to actual costs gives the understanding of

    the projects cost efficiency (the efficiency of spending dollars within project). It is

    calculated as follows: the earned value is divided by the actual cost. If a result is greater than

    1 - the project is being performed for cost bigger than planned; otherwise, the project is

    being performed for cost lower than planned. For example, a CPI of .67 means that for each

    $1.00 spent on the project, we produce $0.67 worth of value. (Richman, 2002, p. 166). The

    analysis of the SPI from time to time during the project can show the progress of projects

    performance considering costs direction.

    CPI = EV / AC

    As it can be noticed, these indices can give an understanding of the projects effectiveness at

    each time given point. On the other hand, it is rather clear that their value is higher in case

    indices are calculated periodically in order to track any trends and undertake actions if necessary.

    The completion of the project can be forecasted using the following estimations:

    Budget at Completion (BAC)can be defined as the estimated total cost of the project after

    completion. In order to calculate it is necessary to total the cost of all activities that are

    present in WBS.

    Estimate to Complete can be defined as the expected additional cost that is necessary for

    project completion. In order to calculate, the following operations have to be performed: it is

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    necessary to subtract the budgeted cost of work that was performed from the earned value;

    then it is needed to divide the obtained number by the cost performance index.

    ETC = (BAC - EV) / CPIfor typical variances

    ETC = (BAC - EV)for atypical variances

    Estimate at Completion can be defined as the expected total cost after project completion.

    The calculations are as follows: it is necessary to add the actual cost and the estimate to

    complete.

    EAC = AC + ETC

    The appropriate calculations were performed for the subproject. The following

    assumption was made for Payment 4Actual Cost and Earned Value will remain the same as

    Planned Value.

    As we can see from the calculations, the project is behind the schedule and over budget. In

    addition, the project is being performed for the cost lower than planned. ETC showed us that it

    would require additional resources and EAC provided with information regarding final cost of

    the project for both variances. The conclusion is as follows: the project will not remain within its

    original budget in case work on phase 4 is not optimized and substantially improved, and, more

    important, performed for less money.

    Planned Value (PV) Actual Cost (AC) Earned Value (EV)

    Payment 1 $1 650 $1 650 $1 650

    Payment 2 $3 600 $4 300 $3 600

    Payment 3 $2 900 $3 100 $1 985

    Payment 4 $3 850 $3 850 $3 850

    Total $12 000 $12 900 $11 085

    Schedule Variance (SV) Cost Variance (CV) Schedule Performance Index (SPI) Cost Performance Index (CPI)

    Payment 1 $0 $0 1 1

    Payment 2 $0 -$700 1 0,837209302

    Payment 3 -$915 -$1 115 0,684482759 0,640322581

    Payment 4 $0 $0 1 1

    Total -$915 -$1 815 0,92112069 0,869382971

    Budget at Completion (BAC) Estimate to Complete (ETC) Estimate at Completion (EAC)

    Typical Var $12 000 $993 $13 893

    Atypical Var $12 000 $915 $13 815

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